May 2024 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates decreased from 7.22% to 7.03% at the beginning of the month
- 1,790 listings are on the market-this is up 38% from the same month last year (SMLY)
- New listings for the month were 1,431-which is up 12% from SMLY
- There were 914 sales for the month-which is down 16% from SMLY
- The list price/sales price ratio was 99.8%
- Average sales price for the month was $571,855-up 5.8% from SMLY
- Median sales price for the month was $505,000-up 6.3% from SMLY
- Median days on market for sold homes was 34-SMLY was 28
- Single family permits YTD are at 1,462-up 356 units from last year (↑32%)
Market Summary
In the Pikes Peak region, the local real estate market remained sluggish throughout May, marking the lowest number of sales in over a decade. The number of sales for the month was the fewest in over a decade and for the year sales are down nearly 11% compared to May of last year. The number of homes on the market jumped 38% partly due to the highest number of new listings to hit the market in nearly 2 years. According to basic economic prin-ciples, a decrease in demand (sales) coupled with an increase in inventory (listings) typically results in price reductions. However, contrary to this expectation, prices saw a surprising up-tick of approximately 6%.
Our theory for this occurrence is the high-end market continues to see more sales than we have traditionally seen AND the “cream puff” homes (great condition, great location, priced right) end up getting multiple offers and selling for more than the comparables say it’s worth. If rates stay close to 7% for the rest of the summer, the number of sales will con-tinue to be slow. If rates get closer to 6.5%, we think the market will take off again.
